PRIVATIZATION

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PRIVATIZATION CARLOS SLIM IN MEXICO

• PRESENTED BY
• OLLIESHA TRAVIS

2
WHAT IS PRIVATIZATION

• Privatization is the incidence of process of
  transferring ownership of business from the
  public sector to the private sector.

3
TYPES OF PRIVATIZATION

• Share issue privatization(SIP)- selling shares on
  the stock market.
• Asset sale privatization selling the entire firm
  or parts of it to a strategic investor.
• Voucher privatization- shares of ownership are
  distributed to all citizens, usually for free or
  at a low price.

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WHO IS CARLOS SLIM?

• Wealthiest man in the world
• Net worth 67.9 billion USD (2007)
• Born January 28, 1940
• Father from Lebanon
• Studied engineering at University Nacional
  Autonoma de Mexico
• Married Soumaya Domit n 1967 and had 6 children.
• Wife died of Kidney ailment in 1999

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CARLOS SLIM RISE TO SUCCESS

• August 8, 2007 featured
• in Fortune magazine.
• Surpassed Bill Gates whos
• Net worth was 58 billion
• USD.

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Beginning the rise

• 1965 with the bottling plant Jarritos del Sur but
  increased in 1970 when his assests became apart
  of Grupo Galas, now known as Grupo Carso.
• During 1980s more than 30 companys joined the
  group
• Most successful transaction was Cigatam and the
  Sanborns chain

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• Carlos Slim is now the richest man in the world,
  thanks to his investments in telecommunications,
  financial services, and varies industries. Here
  is a breakdown of his major holdings.
• of shares held Investment value
• America Movil (wireless) 30 31 billion
• Carso Global Telecom 82 12.9 billion
• Grupo Carso 75 7.1 billion
• Inbursa (financial serv) 67 5.6 billion
• Ideal (infrastructure) 30 1.7 billion
• Saks Inc. (U.S retail) 10 263 million
• Total 58.5 billion

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CARLOS SLIM ACHIEVEMENTS

• VP of Mexican Stock Exchange
• President of Mexican Association of Brokerage
  Houses
• 1st president of Latin American Committee of New
  York Stock Exchange
• Served in BOD for SBC Communication
• Majority share holder of CompUSA and brought 3
  of Apple Computer stock

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CARLOS SLIM ACHIEVEMENTS-cont

• Built Mexican financial-industrial empire (Grupo
  Carso)
• Chairman of Telefonos de Mexico, America Movil
• Awarded Entrpreneurial Merit Medal of Honor from
  Mexicos Chamber of Commerce.
• Gold patron of the American Academy of
  Achievement

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Philanthropy

• Slim leads the Latin America Development Fund
  project and have a budget of 10 billion for 2008
  growth
• Bill Clinton stated Carlos Slim is the most
  important philanthropist in the world and most
  people have never heard of him.

11
Telecom Leadership

• Slim gain accomplishments when he led investors
  such as France Telecom and Southwestern Bell Corp
  into buying Telmex and Telnor from the Mexican
  government in 1990.
• Today 90 of telephone line are operated by
  Telmex which is owned by Carlos Slim.

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Telecom -cont

• Slim also owns Telcel which operates 80 of all
  its countries cell phones.
• Slims wireless carrier America Movil has brought
  companies all across Latin America and is now
  the regions dominant company, with more than100
  million subscribers.
• Slim owned 13 of MCI and sold his stake to
  Verizon of the US on April 11, 2005.

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IS PRIVATIZATION GOOD FOR MEXICO

• According to some articles Carlos Slim
  privatization is not good for Mexico. Why
• Employment only provides employment for a
  quarter of a million Mexican workers ( Wal-mart
  employees 1.7 millions Mexican in Mexico)
• Poverty have of the country lives under poverty
  lines, where the per capital income is under
  6.800 dollars. While Slim has 63 billion
• Border patrolImmigration policy

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Mexico Unemployment rate
15
Mexico Unemployment rate -cont
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Economic Conditions
Slims fortune was built in a country in which
62 of the companies admit they set aside some of
their income to pay bribes to government
employees in order to obtain some benefit, and
30of all public resources allocated to
Government contracts are set aside for
corruption. Furthermore, his fortune increased
with the purchase of a state-owned company.
During the 90s, there were many privatization of
State monopolies in Latin America, especially
those with regard to electricity, petroleum,
telecommunications and transport.

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Pros of privatization

• The aim was to promote these companies
  productivity and efficiency, and to make them
  work for the protection of the citizens, and
  not to depend on Government subsidies and promote
  corruption and the distribution of privileges.
  But in some cases, the only thing achieved was
  the transfer of public monopolies to private
  hands, often with the subsequent sale of public
  assets to the highest bidder and to the friends
  of the Presidential Palace.

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Current Account Balance

• 
  Mexico - 5,414
  2007 est

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GDP

• GDP (PPP) 2006 estimate  -  Total 1.149
  trillion (12th)  -  Per capita 11,249 (63rd)
• GDP (nominal) 2006 estimate  -  Total 840.012
  billion (short scale) (14th)  -  Per capita
  8,066 (55th)

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REFERENCES

• http//www.mex.gov/assets/GDP/current account
• http//en.wikipedia.org/wiki/carlosslim
• http//english.martinvarsavsky.net/general/carlos-
  slim-is-the-richest-man-in-the-world-should-mexica
  ns-be proud.html/trackback
• http//en.wikipedia.org/wiki/Mexico
• http//www.indexmundi.com/mexico/unemployment_rate
  .html

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Q A